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Calculating Departmental Overhead Rates and Applying Overhead to Production At the beginning of the year, Glaser Company estimated the following: Assembly Testing Department Department Total
Calculating Departmental Overhead Rates and Applying Overhead to Production At the beginning of the year, Glaser Company estimated the following: Assembly Testing Department Department Total Overhead $673,000 $726,840 $1,399,840 Direct labor hours 130,500 148,770 279,270 Machine hours 101,000 53,530 154,530 Glaser uses departmental overhead rates. In the assembly department, overhead is applied on the basis of direct labor hours. In the testing department, overhead is applied on the basis of machine hours. Actual data for the month of March are as follows: Assembly Testing Department Department Total Overhead $53,840 $58,147 $111,987 Direct labor hours 10,440 11,902 22,342 Machine hours 8,080 4,282 12,362 Required: 1. Calculate the predetermined overhead rates for the assembly and testing departments. Round your answers to the nearest cent Assembly department overhead rate per direct labor hour Testing department overhead rate per machine hour 2. Calculate the overhead applied to production in each department for the month of March. If required, round your answers to nearest whole value Assembly department Testing department 3. By how much has each department's overhead been overapplied? Underapplied? Testing department 3. By how much has each department's overhead been overapplied? Underapplied? Assembly department Testing department
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